Ly Corporation · TSE:4689
Ly — Z Holdings — FY2022 Earnings Presentation
43 slides from Ly's earnings presentation, Apr 28, 2023
Slide 1: FY2022 Full Year & Q4 Appendix
Security Code: 4689 Z Holdings Corporation Business Results FY2022 Full Year & Q4 Appendix April 28, 2023
Slide 2: FY2022 Q4 Consolidated Business Results
FY2022 Q4 Consolidated Business Results
Slide 3: FY2022 Q4 Factors of Change in Operating Income
FY2022 Q4 Factors of Change in Operating Income Whole Group (JPY B) FY2022 Q4 YoY Difference YoY Major Factors of Change1 (JPY B) • PayPay (Consolidated)² • eBOOK Initiative Japan -7.9 Revenue 433.7 +26.4 +6.5 % +30.0 • LINE +6.8 • LINE +3.5 • eBOOK Initiative Japan -4.6 Cost of sales 133.0 +2.4 +1.
Slide 4: FY2022 Q4 Factors of Change in Net Income Attributable to Owners of the Parent
FY2022 Q4 Factors of Change in Net Income Attributable to Owners of the Parent Whole Group (JPY B) FY2022 Q4 YoY Difference YoY Major Factors of Change (JPY B) Operating income 24.2 +11.2 +86.9 % • Absence of impact of sales of SRE Holdings Other non-operating income 7.4 -18.6 -71.6 % shares -5.4 Ot
Slide 5: FY2022 Q4 Equity in Losses of Associates and Joint Ventures
FY2022 Q4 Equity in Losses of Associates and Joint Ventures Whole Group Major Equity- Equity Based in Business Equity in Losses of Associates and Joint Ventures Method Affiliates Ratio1 Content (JPY B) Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 ０ LINE MAN WEBTOON • Operation of e-manga U.S. 32.3% -1.5 -1.4 -1.4
Slide 6: Business Status of Equity-Method Affiliates
Business Status of Equity-Method Affiliates Whole Group • Many of the equity-method affiliates are moving into a monetizing phase from FY2023. • Aim to turn LINE’s international/financial businesses profitable in around FY2023-FY2025. (Taiwan) (Thailand) (Indonesia) • No. of app downloads1: • Vertic
Slide 7: Adjusted EBITDA – Breakdown of Adjustment Items
Adjusted EBITDA2 – Breakdown of Adjustment Items Whole Group (JPY B) Stock Adjusted EBITDA2 Loss on Other Impairment Compensation Depreciation retirement of losses expenses Op. income ＋ depreciation & & amortization1 fixed assets amortization1 ± EBITDA -0.4 +4.2 71.8 adjustment items +2.7 +0.3 +40.7
Slide 8: Impact from Consolidation of Subsidiaries (PPA)
Impact from Consolidation of Subsidiaries (PPA) Whole Group LINE ZOZO PayPay Annual Annual Annual Amortization Amortization Amortization Amount Amortization Amount Amortization Amount Amortization Item Period Item Period Item Period (Straight (JPY B) Amount (JPY B) Amount (JPY B) Amount (Straight Li
Slide 9: FY2022 Q4 Consolidated Statement of Financial Position
FY2022 Q4 Consolidated Statement of Financial Position Whole Group (JPY B) FY2022 Q3 FY2022 Q4 Difference Assets 8,573.8 8,588.7 +14.9 Cash and cash equivalents 1,860.2 1,651.8 -208.4 Trade and other receivables 653.3 623.3 -30.0 Loans in credit card business 569.5 593.0 +23.4 Investment securities
Slide 10: Financial Index: CAPEX and Net Cash Flow
Financial Index Whole Group CAPEX1 Net Cash Flow (Excludes Financial Business2/Financial Business)1 (JPY B) (JPY B) 77.5 Net Cash Flow Net Cash Flow (Excluding Financial Business) (Financial Business) 68.3 Consolidated Impact of PayPay - 55.0 30.7 dividend consolidation4 15.8 Changes in + 48.2 debts
Slide 11: Financial Index: Interest-Bearing Debt and Net Leverage Ratio
Financial Index Whole Group Interest-Bearing Debt & Net Interest-Bearing Debt1 Net Leverage Ratio3 (Excludes financial business2) (Excludes financial business2) (JPY B) 1,471.5 1,465.8 (JPY B) 1,418.2 1,451.5 1,341.3 1,000.0 185.2 201.7 229.2 187.7 3.00 167.7 800.0 2.66x 2.50 632.5 2.48x 2.49x 582.4
Slide 12: FY2022 Q4 Consolidated Business Results, LINE
｜ FY2022 Q4 Consolidated Business Results1, 2 LINE • YoY increase in revenue and income due to steady growth in account ads and restraining of marketing expense. Revenue (YoY) Operating Income (JPY B) (JPY B) 90.2 86.8 (+10.0%) (+8.6%) 10.3 79.9 81.3 81.5 (+17.3%) (+17.0%) (+15.5%) 6.0 2.4 1.5 -4.5
Slide 13: Change in Reporting Sub-Segments
Change in Reporting Sub-Segments Whole Group • Will change sub-segments form FY2023, to accommodate merger and growth phase of each business. Until FY2022 Q4 From FY2023 Q1 • Display ads, Other LINE • Account ads Search ads ー LINE Ads Ads Account ads ー Media Yahoo! • Search ads • Display ads (Progra
Slide 14: Media Business
Media Business
Slide 15: Group Total Advertising Revenue
Group Total Advertising Revenue Media Business Group Total Advertising Revenue1 Group Total Advertising Revenue – YoY Growth Rate1 (JPY B) 154.7 151.7 151.5 143.0 145.1 Group Total Advertising Revenue: YoY -2.0% 49.0 51.0 48.7 48.8 48.6 +17.7% +14.3% +8.6% +5.3% +4.0% 105.7 100.5 103.0 94.2 96.5 +0.
Slide 16: Business Results (P/L): Media Business
Business Results (P/L): Media Business Media Business (JPY Million) FY2021 Q41 FY2022 Q41 YoY Revenue 169,495 168,252 -0.7% LINE Advertising revenue 49,000 48,713 -0.6% Display advertising 28,614 25,647 -10.4% Account advertising 18,812 22,429 +19.2% Other LINE advertising 1,574 636 -59.6% Yahoo Jap
Slide 17: Major Services and Products of Media Business Segment
Major Services and Products of Media Business Segment Media Business Item Breakdown LINE Ads Display ads LINE VOOM, LINE NEWS, Chat List, Talk Head View, Talk Head View Custom, etc. Account ads LINE Official Account, LINE Promotion Sticker, LINE de Obo, LINE Flyer, etc. Other ads LINE Part Time Jobs
Slide 18: Advertising Products
｜ Advertising Products Media Business Item Fee Calculation Placement Pages/Product Outline Type of Advertiser Display ads Cost per-click LINE VOOM LINE VOOM tab Major corporations/SMBs Cost per-view Cost per-click LINE NEWS NEWS tab Major corporations/SMBs Cost per-view Cost per-click Chat List Top
Slide 19: Advertising Products
｜ Advertising Products Media Business Item Fee Calculation Placement Pages Type of Advertiser Search advertising Cost per-click Search results pages Major corporations/SMBs Display advertising Programmatic Yahoo! JAPAN Ads Top page Cost per-click “Display advertising” Interior pages of service sites
Slide 20: Commerce Business
Commerce Business
Slide 21: Business Overview (Domestic Merchandise Transaction Value)
Business Overview (Domestic Merchandise Transaction Value) Commerce Business • Shopping business maintained the previous year’s level while improving profitability. • Reuse business, Z Holdings’ unique business, expanding steadily. Domestic Merchandise Transaction Value1 Domestic Merchandise Transac
Slide 22: Business Results (P/L): Commerce Business
Business Results (P/L): Commerce Business Commerce Business (JPY Million) FY2021 Q41 FY2022 Q41 YoY Revenue 208,611 202,253 -3.0% Merchandise EC 165,594 161,752 -2.3% Shopping business 80,445 71,580 -11.0% Reuse business 13,714 14,485 +5.6% ASKUL online BtoB business 71,434 75,685 +6.0% Services EC
Slide 23: Main Service Platforms of Shopping Business
Main Service Platforms of Shopping Business Commerce Business Existing E-commerce Quick Commerce Social Commerce Shopping Mart (Renewed in October 2022) Mall-type Direct sales Direct sales Immediate delivery Mall-type E-commerce store (Approx. 600 mil. items) (Approx. 900,000 (No. of items service (
Slide 24: Major Services and Products of Commerce Business Segment
Major Services and Products of Commerce Business Segment Commerce Business Item Breakdown Merchandise EC - Yahoo! JAPAN Shopping, ZOZOTOWN, LOHACO, Charm, LINE SHOPPING, Shopping business LINE FRIENDS, LINE GIFT, MySmartStore, Yahoo! JAPAN Mart by ASKUL, LIVEBUY, Overseas EC1 Reuse business YAHUOKU!
Slide 25: KPI - Definition of EC Transaction Value
KPI - Definition of EC Transaction Value Commerce Business Item Major Services/products EC transaction value - Domestic merchandise - Yahoo! JAPAN Shopping, ZOZOTOWN, LOHACO, Charm, LINE SHOPPING, LINE GIFT, Shopping business LINE FRIENDS, MySmartStore, Yahoo! JAPAN Mart by ASKUL, LIVEBUY Reuse busi
Slide 26: Strategic Business
Strategic Business
Slide 27: Major KPIs of PayPay
｜ Major KPIs of PayPay Strategic Business Registered Users1・MTU2 (Standalone) No. of PayPay Payments3 (Standalone) Registered Locations4 (Standalone) (Million) (B) (Million) 56.64 4.10 1.368 1.392 3.98 54.00 3.87 51.21 3.66 3.74 1.267 48.65 46.79 1.113 1.005 30.33 28.19 25.16 22.53 M T U YoY +38.5%
Slide 28: Major KPIs of PayPay Card
｜ Major KPIs of PayPay Card Strategic Business Active Cardholders Transaction Volume¹ Revolving Balance (Million) (JPY B) (JPY B) 10.04 976.4 971.9 259.8 9.58 9.05 230.0 8.68 841.6 842.7 8.31 773.2 202.9 192.8 184.7 YoY +20.8% YoY +25.7% YoY +40.6% Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q4'21 Q1'22 Q2'22 Q3'
Slide 29: Major KPIs of PayPay Bank
｜ Major KPIs of PayPay Bank Strategic Business No. of Accounts Deposit Balance Loan Balance (Million) (JPY B) (JPY B) 6.96 1,666.9 624.4 6.68 1,585.2 6.42 1,539.5 1,517.9 6.22 6.02 1,461.7 503.9 511.8 486.0 416.7 YoY +15.6% YoY +14.0% YoY +49.8% Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q4'21 Q1'22 Q2'22 Q3'22
Slide 30: Capital Structure (Shareholding Ratio)
｜ Capital Structure (Shareholding Ratio) Strategic Business • Consolidated PayPay Corporation in October 2022. May 2018 As of end of As of end of As of end of As of end of Capital Structure after Completion of Transactions4,5 (At founding) May 2019 Mar 2020 Mar 2022 Sep 2022 (October 2022 –) Yahoo J
Slide 31: Major KPIs of International Financial Business
｜ Major KPIs of International Financial Business Strategic Business LINE BK (Taiwan) – No. of Users LINE Bank (Indonesia) – No. of Users YoY +34.2% YoY 58.6% Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 30
Slide 32: Business Results (P/L): Strategic Business
Business Results (P/L): Strategic Business Strategic Business (JPY Million) FY2021 Q41 FY2022 Q41 YoY Revenue 27,730 63,492 +129.0% Fintech 27,126 61,351 +126.2% PayPay (Consolidated) 2, 3 - 43,065 N/A PayPay Card3 13,464 - N/A PayPay Bank3 7,596 9,757 +28.5% Other fintech (LINE Fintech, etc.) 6,065
Slide 33: PayPay Corporation – Consolidated Business Results
PayPay Corporation – Consolidated Business Results Strategic Business Consolidated Revenue1/EBITDA2 (IFRSs) Consolidated Statement of Financial Position (IFRSs)3 (JPY B) 46.8 (JPY B) 46.1 40.5 FY2022 Q3 FY2022 Q4 差額 34.1 30.2 Assets 1,742.1 1,701.8 -40.3 Cash and deposits 673.9 641.2 -32.7 Other Ass
Slide 34: PayPay Bank Corporation – Business Results
PayPay Bank Corporation – Business Results Strategic Business Revenue/Operating Income (Non-Consolidated IFRS)1 Statement of Financial Position (JGAAP)1 (JPY B) (JPY B) 10.3 10.2 FY2022 FY2022 Difference Q3 Q4 9.3 8.6 8.7 Assets 1,736.9 1,844.3 +107.4 Cash and cash equivalents 446.0 369.8 -76.2 Trad
Slide 35: Major Services and Products of Strategic Business Segment
Major Services and Products of Strategic Business Segment Strategic Business Item Breakdown Fintech - PayPay - (Consolidated)¹ PayPay Bank - PayPay Asset Management, PayPay Insurance, Magne-Max², LINE Pay, LINE Securities, LINE Score, Other fintech LINE Pocket Money, LINE BITMAX, LINE NFT, etc. Othe
Slide 36: International Business
International Business
Slide 37: International Business Development
｜ International Business Development International Business • Overwhelming reach and market share in Asian countries and regions, mainly Taiwan, Thailand, and Indonesia. • Generating revenue mainly from advertising, stickers, and game businesses based on messaging. International Business Revenue5 Ta
Slide 38: Non-Financial Information
Non-Financial Information
Slide 39: Establishment of a New Remuneration Policy and Revision of Executive Remuneration Plan
Establishment of a New Remuneration Policy and Revision of Executive Remuneration Plan Non-Financial Information • The new executive remuneration plan from FY2022 onwards puts more emphasis on stock-based remuneration as a medium- to long-term incentive. • Fostering a sense of shared interest (Same
Slide 40: User Base
User Base Non-Financial Information Yahoo Japan - Number of Monthly Logged-in User IDs LINE - Monthly Active Users (Million) (Million) March 2023 Global MAU1：198 55.4 54.8 55.3 54.8 54.9 176 176 176 176 178 9 9 8 7 7 53 53 53 53 54 22 22 22 22 22 92 92 93 94 95 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q4'21 Q1
Slide 41: Integrated Report Portal
Integrated Report Portal Non-Financial Information • Financial/non-financial information useful for investment decisions are kept up to date Vision and Strategy Sustainability Value Creation Business Performance URL: (English) https://www.z-holdings.co.jp/integrated-report/en/ (Japanese) https://www
Slide 42: Disclaimer
Disclaimer Statements made at the meeting or included in the documents that are not historical facts are forward-looking statements about the future performance of Z Holdings Corporation (Company, Z Holdings, ZHD) and its consolidated subsidiaries and affiliates. The Company cautions you that a numb
Slide 43: Unleashing the infinite potential of all people, with the power of information technology
Unleashing the infinite potential of all people, with the power of information technology